Pharmaceutical giant Johnson & Johnson has announced a $6.5 billion settlement to resolve the majority of lawsuits in the U.S. alleging that its baby powder and talc products contain asbestos and cause ovarian cancer. The settlement, which would be implemented through a third bankruptcy filing by the company’s subsidiary, LTL Management, aims to address the thousands of ovarian cancer lawsuits against J&J.
The deal includes a three-month voting period for plaintiffs to reach a consensus on the settlement for current and future ovarian cancer lawsuits. Ovarian cancer cases make up 99% of the talc-related lawsuits against Johnson & Johnson, with around 54,000 lawsuits consolidated in federal court in New Jersey.
While J&J maintains that its products are asbestos-free and do not cause cancer, the company is confident that the settlement will garner the 75% support needed for a bankruptcy settlement to end the litigation entirely. The remaining lawsuits concerning mesothelioma, a cancer linked to asbestos exposure, will be addressed separately outside of the new settlement plan.
Johnson & Johnson has already settled 95% of mesothelioma lawsuits and state actions alleging failure to warn consumers about the risks of talc products. The company took a $2.7 billion charge in the first quarter of 2024 to account for recent talc-related settlements.
Despite ongoing litigation, J&J continues to defend itself and has won the majority of ovarian cancer cases tried to date. However, significant verdicts, including a $2.12 billion award to 22 women, highlight the impact of the talc lawsuits on the company. Last month, J&J was ordered to pay $45 million in a mesothelioma case while prevailing in an ovarian cancer lawsuit.
The latest settlement agreement signifies a major step towards resolving the talc litigation that has plagued Johnson & Johnson for years, emphasizing the company’s commitment to addressing legal challenges and potential liabilities associated with its talc products.